Everspin Awarded $14.55M to Provide Continued, Stable On-Shore MRAM Manufacturing

Rhea-AI Summary

Everspin Technologies, Inc. (NASDAQ: MRAM) has been awarded $14.55 million over 2.5 years to develop a long-term plan for providing on-shore MRAM manufacturing services to aerospace and defense industries. The company's PERSYST MRAM manufacturing facilities in Chandler, Arizona will continue to support both current and future Department of Defense (DoD) strategic and commercial space system requirements.

Everspin's CEO, Sanjeev Aggarwal, emphasized the company's commitment to providing continuous on-shore MRAM capability to aerospace and defense customers. The award aims to mitigate risks to Everspin's MRAM manufacturing supply chain, ensuring stable domestic production of MRAM wafers and devices.

Positive

• Awarded $14.55 million contract over 2.5 years
• Continued support for Department of Defense and commercial space systems
• Strengthening position in aerospace and defense industries
• Mitigating supply chain risks for MRAM manufacturing

Negative

• None.

Insights

Financial Analyst

This $14.55 million award over 2.5 years is a significant boost for Everspin Technologies (NASDAQ: MRAM), representing a substantial revenue stream. For a company with a market cap of around $150 million, this contract could account for approximately 10% of its annual revenue, assuming even distribution. The deal's focus on aerospace and defense sectors provides stable, long-term income, potentially improving Everspin's financial stability and reducing market volatility. However, investors should note that government contracts can be subject to political and budgetary changes. This award also strengthens Everspin's position in the critical on-shore manufacturing sector, which could lead to additional contracts and partnerships in the future.

Tech Expert

Everspin's MRAM technology offers significant advantages over traditional memory solutions, particularly for aerospace and defense applications. MRAM combines the speed of SRAM, the density of DRAM and the non-volatility of flash memory, making it ideal for mission-critical systems. The company's "front-end CMOS agnostic" approach is a key differentiator, allowing flexibility in sourcing CMOS wafers. This adaptability could be important in mitigating supply chain risks, a growing concern in the semiconductor industry. The continued investment in Everspin's Chandler, Arizona facility suggests confidence in the company's manufacturing capabilities and could potentially lead to technological advancements in MRAM production processes.

Market Research Analyst

This award signifies the growing importance of secure, domestic semiconductor manufacturing in the U.S. The focus on "on-shore MRAM capability" aligns with broader national security concerns and the CHIPS Act initiatives. Everspin's position as a leading MRAM manufacturer in the U.S. could become increasingly valuable as geopolitical tensions affect global supply chains. The aerospace and defense markets, while niche, offer high margins and stable demand. This contract could enhance Everspin's reputation, potentially opening doors to commercial applications of MRAM technology. Investors should monitor how this award impacts Everspin's market share in the emerging non-volatile memory market, currently dominated by larger players in flash memory.

Everspin PERSYST MRAM manufacturing facilities will continue to be used for US domestic production of MRAM wafers and devices for aerospace and defense industries

CHANDLER, Ariz.--(BUSINESS WIRE)-- Everspin Technologies, Inc. (NASDAQ: MRAM), the world’s leading developer and manufacturer of Magnetoresistive Random Access Memory (MRAM) persistent memory solutions, today announced a strategic award to develop a long-term plan to provide manufacturing services for aerospace and defense segments. Under the award, Everspin will provide a plan to mitigate risks to its MRAM manufacturing supply chain.

“Everspin is pleased to provide continuous on-shore MRAM capability to its aerospace and defense customers,” said Sanjeev Aggarwal, President Technologies and CEO of Everspin Technologies. “Our MRAM manufacturing technology and integration is front-end CMOS agnostic allowing our customers and Everspin to source the optimal CMOS wafers from a FAB of choice.”

Everspin’s MRAM manufacturing line in Chandler, Arizona will continue to support both current and future Department of Defense (DoD) strategic and commercial space system requirements. The award is valued at $14.55 million over 2.5 years.

About Everspin Technologies

Everspin Technologies, Inc., is the world’s leading provider of Magnetoresistive RAM (MRAM). Everspin MRAM delivers the industry’s most robust, highest-performance, non-volatile memory for Industrial IoT, Data Centers, and other mission-critical applications where data persistence is paramount. Headquartered in Chandler, Arizona, Everspin provides commercially available MRAM solutions to a large and diverse customer base. For more information, visit www.everspin.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240820246891/en/

Agency Contact:

Kiterocket

Stephanie Quinn

T: 480-316-8370

E: squinn@kiterocket.com

Source: Everspin Technologies, Inc.

FAQ

What is the value and duration of the award Everspin Technologies (MRAM) received?

Everspin Technologies (MRAM) received an award valued at $14.55 million over a period of 2.5 years.

Where are Everspin's MRAM manufacturing facilities located?

Everspin's MRAM manufacturing facilities are located in Chandler, Arizona.

What industries will benefit from Everspin's (MRAM) on-shore MRAM manufacturing?

Everspin's (MRAM) on-shore MRAM manufacturing will benefit the aerospace and defense industries.

What is the purpose of the award given to Everspin Technologies (MRAM)?

The award is to develop a long-term plan for providing manufacturing services and mitigating risks to Everspin's MRAM manufacturing supply chain for aerospace and defense segments.